Why the Pfizer share price shot higher on Wednesday

The company’s powerful growth isn’t only due to its coronavirus vaccine.

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Bottle of tablets spilling over onto piles of US dollars

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Inoculating the world can be quite beneficial for a big pharmaceutical company's finances. Such is the case with Pfizer Inc (NYSE: PFE), the shares of which closed Wednesday more than 3% higher on the back of top- and bottom-line beats in its latest quarter.

So what

Wednesday morning, Pfizer unveiled its Q2 figures. They revealed that the pharmaceutical sector giant earned revenue of $19 billion, a robust 86% higher than in the same quarter of 2020. Much of this was, of course, due to the BNT162b2 coronavirus vaccine it's developed with Germany-based BioNTech. But even stripping out the vaccine's sales from the top line, the company still managed to grow revenue by 10% to $11.1 billion. On average, analysts tracking Pfizer stock were modeling $18.45 billion.

The company notched a more convincing beat with net profit. This also saw quite a leap, as on a non-GAAP (adjusted) basis it increased by 75% to $6.08 billion ($1.07 per share). Those analysts were anticipating $0.96 per share.

Quoted by the company as saying the quarter was "remarkable," CEO Albert Bourla signaled optimism for the coming years. He and his troops believe Pfizer will be able to hit a 6% compound annual revenue growth rate through 2025. 

Now what

With that powerful quarter behind it, the confident Pfizer has upped its full-year guidance. It now expects $78 billion to $80 billion in revenue (previous estimate: $70.5 billion to $72.5 billion), and adjusted diluted per-share earnings of $3.95 to $4.05 (up from $3.55 to $3.65).

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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